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HomeMy WebLinkAbout0962 1 UNIFORM COVENANTS. Horrower and I.ender covenant snd agra as follows: ' l. Pay~aeat ot Princlp~l red Iatero~ P~ra~eat anii Lte Au~a. 8orrowcr shall promptty pay when dac ' the principsl of and interest on the debt evt~enced by the Note and ~ny prepsyment ~nd fate chArges due under tho Note. ~ 2. F~Ads [or Taxa asd Imannce. ' Subjtct to appik~ble law or to ~ written waiver Dy I.ender, Borrowc~ shaU pay ~ to I.ender on the day monthly paymenta ue due under the Note, untii the Note is psid in ~full~ a sum ("Funds") equal to oaa-twelRh of (a) ye~rly t~uces and asxssme~ts which may ~ttai~ p~iority over this Security Instrument; (b) yearly i Icasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly ~ mortgage insurana premiums. if ~ny. These items are callod "escrow items." Lendcr may estimate the Funds due on thc basis of current da~ta and reasonabte estimates of future escmw items. Th~ Funds shall be held in an inatitution tht depoalts or sccounts of which an insur..d or guarantoed by a federal or ~ stat~ agency (including Lend~r if Lerider is such an institutiot~). Lender shall apply the Funds to pay thc escrow items. • Lender may not charge for holding and applying the Funds, analyzing the account or verit~ring the escrow items~ uniess Lender pays 8orrower interest on the Funds and applicable law permits Lender to make such a charge. Horrower and I,ender may agrce in writing that interest shall be paid on the Funds. Unless an agroement is made or applicable law requires interest ta be paid~ I.ender shall not be required ta pay Borrower any interest or ~arnings on the Funds. Lender shail give to Horrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the . purpose for which each debit to the Funds was made. The Funds are pledgod as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender. together with the future monthly payments of Tunds payable prior to the due dates of tha escrow items~ shalt excad the amount roquired to pay the tscrow items when due, the excess shall be, at Bonower's option, eith~r promptly repaid to Horrower or credited to Bonower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Bonower shall pay to Lender any ~ amount necessary to make up the deficiency in one or mon payments as roquired by Lender. ; Upon payment in full of all sums securod by this Sccurity instrument~ I.ender shall promptly retund to 8orrower ~ any Funds held by Lender. If under paragraph 19 the Property is sold or acqvired by Lender, I.ender shall apply, no later ! than immodiateiy prior to the sale oP the Property or its acquisition by Lender, any Funds held by Lender at the time of ~ applicatien as a crcdit against the sums secured by this Security Instrument. 3. Applicatlon of Payntents. Unless applicable law provides otherwise. all payments received by I.ender under paragraphs i and 2 shall be applied: first. to late chargas due under the Note; second, to prepayment charges due under the Note; third. to amounts payable under paragraph 2; fourth~ to interest due; and last~ to principal due. 4. tfiarges; Lieas. Borrower shail pay al! taaes, assessments, charges, fines and impositions attributablc to the Property whic?~ may attain priority over this Security Instrument~ and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shali pay them on time directly to the person owed payment. 8orrower shaU promptty furnish to Lender ail notices of arr~ounts ~ to be paid under this paragraph. If Bonower makes these payments directly, Borrower shall promptly furnish to I.ender receipts evidencing the payme~ts. • ~ 8orrower shall promptly discharge any lien which has priority over this Security lnstrument unless Bonower: (a) ~ agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good ~ faith the lien by. or defends against enforcement of the lien in~ legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forfeiture of any part of the Property; or (e) secures from the holder of the lien an agreement satisfactary to Lender subordinating the lien to this Socurity Instrument. If I.ender determines that any pan of the Property is subject to a lien which may attain priority over this Security Instrument. I.end~r may give Horrower a notice identifj+ing the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. S. H'ezard Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the Property ' insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which I.ender ~ requires insurance. This insurartce sha!! be maintained in the amounts and for the periods that I.ender requires. The _ insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. ~ All insurance policies and renewals shall be acceptabte to Lender and shall include a standard mortgage clause. Lend~r shall have the right to hold the policies and renewals. Jf I.ender requires, Borrower shall promptly give to Lender aIl receipts of paid premiums and renewal notices. In the evrnt of loss, Borrower shali give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made promptly by 8orrower. Unless I.ender and Borrowec oiherwise agree in writing, insurance proceeds shall be appiied to restoration or repair of the Propeny damaged, if the restoration or repair is economically feasible and L.ender's security is not taseneci. If the restoration or repair is not economically feasible or L.ender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whcther or not then due, with any eacess paid to Borrower. If Bonower abandons the Propeny, or dces not aeswer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principai shall not extend or postpone the due date of the monthfy Payments referred to in paragraphs 1 and 2 or change the amount of the payments. If ander paragraph 19 the Property is acquired by Lendtr, Borrower s right to any insurance policies and proceeds resulting from damage to the Property priar to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preserration and Matnteaance of Property; LeAae6olds. Horrower shall not destroy, damage or substantially change the Property, atlow thc Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, ~ ~orrower shall comply with the prorisions of the lease, and if Borrower acquir~es fee title to the Property, the leasehold and ~ fee title shall not merge unless I.ender agras to the merger in writing. ~ 7. ProtecHon o! Lender's Rlg6ts In t6e Property; Mortgage Irisurance. tf Borrower fails to pert'orm the covenants and agreements contained in this S~curity Instrument~ or there is a legal proceeding ihat may significantly alfect ~ ~ L.ender's rights in the Property (such as a procading in bankruptcy, probate, for condemnation or to enforce laws or regulations), thcn L,ender may do and pay for whatever is nocessary td protect the value of the Property and L.endsr's rights in the Property. L.ender's actions may inelude paying any sums secured by a lien which has priority over this Security ~ Instrument~ appearing in court~ paying eeasonable attorneys' fas and entering on the Property to make repairs. Althvugh ~9 Lender may take action under this paragraph 7~ Lender does not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become addiiional debt of Borrower secured by this 6~ Sccurity Instrument. Unle~ Horrower and Lender agra to other terms of payment, these amounts shall bear interest from th~ date of disbursement a~t the Note rate and shali be payable~ with interest, upon notice trom Lender to Borrower requesting paymrnt. ~ ~ ~ ~ ~a:.:~ 3 ~ ~ ~ _ - Gi=.. _ . _ ~ . ~ . ~ . '